SDG 7: Affordable and Clean Energy | SDG 13: Climate Action | SDG 9: Industry, Innovation, and Infrastructure
Indian Renewable Energy Development Agency Ltd. (IREDA) | Ministry of New & Renewable Energy (MNRE)
On January 1, 2026, the Indian Renewable Energy Development Agency (IREDA) announced its provisional business results for the nine months ended December 31, 2025, demonstrating explosive growth in its green financing operations. Reaffirming its position as India’s largest pure-play green financing NBFC, IREDA achieved a massive 44% year-on-year surge in loan disbursements, reaching ₹24,903 crore compared to ₹17,236 crore in the previous year.
Key provisional operational milestones (April–December 2025) include:
Sanction Momentum: Loan sanctions grew by 29%, totaling ₹40,100 crore as against ₹31,087 crore in the corresponding period of 2024.
Loan Book Expansion: The company’s outstanding loan book expanded by 28%, reaching a record ₹87,975 crore as of December 31, 2025.
Sectoral Reach: Financing demand remained robust across solar, wind, hybrid power projects, and emerging green infrastructure segments.
Governance Excellence: In its 38-year history, IREDA has disbursed over ₹1.63 lakh crore while maintaining high asset quality, with cumulative write-offs limited to just ~₹135 crore.
Market Recognition: The performance triggered a positive reaction in the stock market, with IREDA shares gaining ~2% following the update.
What is a ‘Pure-Play’ Green Financing NBFC? It refers to a specialized Non-Banking Financial Company that exclusively funds projects dedicated to renewable energy and energy efficiency. Unlike diversified lenders, a pure-play institution like IREDA directs 100% of its capital toward sustainable infrastructure—such as solar farms, wind parks, green hydrogen, and ethanol production—making it a dedicated catalyst for a nation’s energy transition.
Policy Relevance
IREDA’s record-breaking performance is a critical indicator of the accelerating pace of India’s renewable energy transition. The sustained growth in sanctions and disbursements directly supports India’s Net Zero 2070 commitment and the target of reducing GDP emission intensity by 45% by 2030.
Strategic Impact for India:
Capital Base Strengthening: To meet the surging demand for green credit, IREDA recently raised ₹453 crore via Perpetual Bonds (oversubscribed 2.69 times) and is planning a ₹2,500-₹3,000 crore QIP in FY26.
De-risking Emerging Sectors: The agency is pivoting toward financing high-growth but high-risk “frontier” sectors like Green Hydrogen, offshore wind, and solar manufacturing to attract private sector participation.
Inclusive Green Growth: IREDA is reinforcing its commitment to the North-East region and community-driven clean energy projects to ensure the energy transition is geographically and socially balanced.
Relevant Question for Policy Stakeholders: How will IREDA maintain its low ‘Gross NPA’ levels while aggressively expanding into emerging technologies like Green Hydrogen and Grid-scale storage, which currently lack long-term operational performance data in the Indian context?
Follow the full news here: IREDA Posts Strong Provisional 9-Month Performance